The Basics
What is the main difference between a real estate agent and a broker?
A broker has a higher-level license and can own their own firm or manage other agents; an agent must work under a broker.
Do real estate agents usually get a steady hourly paycheck?
No. Most work on commission, meaning they only get paid when a house successfully closes.
What is an "Open House"?
A scheduled time when a home is open for anyone to walk through and tour without a private appointment.
What is a "Home Inspection"?
A professional examination of the house’s condition (roof, plumbing, etc.) to find any hidden problems before the sale.
What is the most important "soft skill" for a real estate agent?
Communication or Negotiation. They spend all day talking to people and making deals.
Can you sell a house the moment you turn 18?
Not quite. You must first complete required pre-licensing classes and pass a state-proctored exam.
Who usually pays the real estate commission: the buyer or the seller?
Traditionally, the seller pays the commission for both agents out of the home's sale price.
What does "MLS" stand for?
Multiple Listing Service. It’s a private database where agents share information about houses for sale.
What does it mean when a house is "Under Contract" or "Pending"?
The seller has accepted an offer, but the paperwork and inspections aren't finished yet.
Do you need a 4-year college degree to become a real estate agent?
No. In most states, you only need a high school diploma plus the required real estate courses.
What is a "buyer’s agent"?
The agent who represents the person looking to purchase a home.
What does "Escrow" mean?
A neutral third-party account that holds money and documents until the deal is finished.
True or False: Real estate agents only work Monday through Friday, 9 to 5.
False. They often work evenings and weekends because that’s when clients are free to look at houses.
What is a "Dual Agency"?
When one agent represents both the buyer and the seller in the same transaction (this is illegal in some states!).
What is a "Niche" in real estate?
A specialty, like only selling luxury mansions, helping first-time buyers, or selling farm property.
What is a "listing agent"?
The agent who represents the seller and helps them market their home.
If an agent sells a house for $300,000 at a 6% total commission, do they keep all $18,000?
No. That money is usually split between the listing firm, the buying firm, and then shared with the individual agents.
What is a "Comparative Market Analysis" (CMA)?
A report an agent creates to help a seller price their home by looking at similar houses that recently sold nearby.
What is a "Closing"?
The final meeting where the deed is transferred, the money is paid, and the buyer gets the keys.
Why is "Networking" important for agents?
Most of their business comes from referrals (friends of friends), so they need to know a lot of people!
What do you call a real estate professional who is a member of the National Association of Realtors (NAR)?
A REALTOR®. (Note: All Realtors are agents/brokers, but not all agents are Realtors!)
What is "Earnest Money"?
A "good faith" deposit a buyer gives to show they are serious about buying the house.
What is "Staging"?
Decorating or rearranging furniture in a home to make it look as attractive as possible to potential buyers.
What is an "Appraisal"?
An unbiased estimate of a home’s value, usually required by the bank to make sure the house is worth the loan amount.
What is a "Fiduciary Duty"?
A legal requirement that the agent must act in the best financial interest of their client, not themselves.